Starbucks (SBUX - Free Report) closed at $75.49 in the latest trading session, marking a +0.12% move from the prior day. The stock lagged the S&P 500's daily gain of 0.43%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, added 0.75%.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of -$0.61 per share. This would mark a year-over-year decline of 178.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.25 billion, down 37.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.80 per share and revenue of $23.32 billion. These totals would mark changes of -71.73% and -12.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 36.07% lower within the past month. SBUX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 94.45. This represents a premium compared to its industry's average Forward P/E of 40.93.
It is also worth noting that SBUX currently has a PEG ratio of 6.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SBUX's industry had an average PEG ratio of 4.99 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.